BetaShares Australian ETF Review - September 2019 | BetaShares

BetaShares Australian ETF Review – September 2019

BY Ilan Israelstam | 16 October 2019
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INDUSTRY BLASTS PAST THE $55B MILESTONE

Buoyed by the equity markets, which came roaring back in September after a difficult August, the Australian ETF industry broke through the $55B funds under management milestone last month, ending September at an all-time high in terms of funds under management of $56.2B. Based on the level of growth we’ve seen so far this year, we believe ETF industry FuM is on track to exceed $60B by end 2019, which would mean unprecedented 12-month growth of $20B. Read on for more details.

Australian ETP Market Cap: July 2001 – September 2019

CAGR: Compound Annual Growth Rate
Source: ASX, BetaShares

Market cap

  • ASX Exchange Traded Product Market Cap: $56.2B – New industry record
  • Market cap increase for month: 3.9%, +$2.1B
  • Market cap growth for the last 12 months: 33%, + $14.1B – Greatest absolute growth over 12 mth period

Comment: The industry ended September at a record of $56.2B with a robust monthly market cap increase of 3.9% which amounted to over $2B in absolute growth for the month

New money

  • Unit growth for month (units outstanding by number): +2.5%
  • Net new money for month (units outstanding by % value): +$1.6B 

Comment: Over three-quarters of the growth this month came from net inflows into the industry which were a very strong $1.6B, with recent months showing that investors are increasing their allocations to ETFs in both rising and falling equity markets

Products

  • 246 Exchange Traded Products trading on the ASX – no new products launched this month; 1 maturation of single bond product

Trading value

  • Trading value decreased 5% after last month’s record, but was still 2nd highest trading volume on record ($5.1B)

Comment: September was also a very busy month for trading, which at $5.1B in total, was the 2nd highest value traded on record

Performance

 

Top 5 category inflows (by $) – September

Category                                                  Inflow Value
Australian Equities $575,717,057
Fixed Income $308,039,138
International Equities $282,599,935
Cash $152,038,741
Commodities $130,537,524

Comment: Unlike other months so far this year, it was broad Australian equities that took in the most flows with over $500M of net new money into this category. Australian Bond flows continued to be robust, and were the 2nd best category for flows. 

Top category outflows (by $) – September

There were no significant category level outflows in September.

Top sub-category inflows (by $) – September

Sub-Category   Inflow Value
Australian Equities – Broad $504,838,923
Australian Bonds $254,816,207
International Equities – Developed World $173,401,103
Cash $152,038,741
Gold $123,627,915

Top sub-category outflows (by $) – September

Sub-Category                                                 Outflow Value
Australian Equities – Financials Sector ($25,264,200)
International Equities – Europe ($4,764,043)

Comment: Monthly net outflows were very limited with small outflows from Australian Financial Sector products most likely on profit selling, and continued outflows from European exposures which appear to remain an area of concern for investors.

4 Comments

  1. Michael Hambrook  |  October 16, 2019

    How do I invest in this product ? It looks good and I think would be a useful addition in my M+SMSF. Looking forward to your response.

    Cheers

    1. Gavin Montgomery  |  October 23, 2019

      Hi Michael,

      We’d be happy to help you out. Can you please specify which product you were referring to?

      You can see the guide on how to start investing here.

      Kind regards,
      BetaShares Client Services

  2. John Denham  |  October 16, 2019

    I have been a holder of a couple of ETF’s for a while and yes it is interesting to see that others like me are agreeing with my investment decisions.

    However, as someone with funds invested, I am more interested in which ETF is performing the best – not what the inflow is. Can you list the relative performance of all of your ETF for both long and short term so I can see whether I need to move my money from a lesser performing ETF to 1 or 2 that are doing better.

    1. Ilan Israelstam  |  October 16, 2019

      Hi there John – the performance of all of our products is available on our website – see the following link https://www.betashares.com.au/fund-list/compare-funds/?submit-compare-top=

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